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Mr. Nick DeBar File No. 435-09139-0 City of Mounds View February 22, 2011 Area D – Bidding Phase Services Page 4 The activity is appropriate to be included in one of the previous defined tasks. The activity should simply be left on this “Other” task. ¾Deliverable / End Result:None. Task: Direct Project Expenses x In addition to the labor associated with the performance of the tasks defined above, there will be some amount of direct project expenses incurred during performance of the Bidding Phase of the project. Examples of such expenses would include, but not be limited to, mileage for travel to meetings, and printing costs. -Direct Project Expenses are reimbursable per the existing Professional Services Agreement between Bonestroo and the City. -Rates for the Direct Project Expenses proposed for this project are shown on Exhibit B included with this letter. Estimated Cost – Bidding Phase Engineering Services We have performed a preliminary estimate of the anticipated effort necessary to complete the work of the Bidding Phase for the Area D Street and Utility Improvement Project. The estimate has been developed based on the preceding discussion of the scope of work, historical information from the projects in Area A and Areas B/C, as well as our understanding of the requirements and expectations of the City of Mounds View. The estimated cost of the engineering services for the Bidding Phase of the project is shown below: Area D – Street & Utility Improvement Project Bidding Phase Engineering Services Estimated Cost $7,000 The amount of actual engineering services needed for the Bidding Phase can vary based on factors beyond the control of the engineer or the City. These factors can include such things as the number and nature of questions received from potential bidders, and the number of formal addenda required for the project. The cost estimate provided above has been based on a typical amount of bidder questions, and on the issuance of one formal addendum. Design Phase Engineering Services - Amendment The engineering services for the Design Phase of the Area D project were authorized by the City Council on July 12, 2010. At that time the estimated cost of the Design Phase engineering services was $234,000, which was the amount authorized by the Council. Through January 29, 2011 the actual cost of the Design Phase engineering is $231,362.46. This is approximately $2,640 below the authorized amount of $234,000. Considering the work remaining in the Design Phase, which includes among other things final edits of the construction documents, print production of the documents for use in bidding, and final activities for obtaining the Rice Creek Watershed District Permit, NPDES Stormwater Permit, and approvals from the Minnesota Department of Transportation for State Aid, it is certain the final cost of the Design Phase engineering services will exceed $234,000.